AN ASSESMENT ON INTEREST RATE PARITY APPROACH

FAİZ ORANI PARİTESİ YAKLAŞIMI ÜZERİNE BİR DEĞERLENDİRME

152
523

Öz

In this study, empirical studies on covered interest
rate parity and uncovered interest rate parity which are frequently used in the
construction of both international finance and open-economy macroeconomic
models were surveyed. When studies that based on econometric model, country and
period evaluated in general three important findings are attained. First of
all, it is rare to find studies that both hypotheses are valid. Secondly, in
studies that more current econometric methods were used more supporting
findings for hypotheses were observed. Lastly, validity likelihood of hypotheses
rises in financial markets that are more stable and more integrated to each
other, transaction costs and financial risks are low and capital controls are
minimized in between. Findings are expected to be beneficial to researchers
that interests in the subject.